https://arab.news/bw2m5
RIYADH: The Arab Energy Fund reported a 7 percent increase in net income for the first half of 2025, reaching $129 million compared to $121 million in the same period last year.
The multilateral impact financial institution attributed the growth to strong operating income across all business lines, supported by disciplined risk management and cost efficiencies.
Total assets rose to $12 billion as of June 30, marking a 15 percent year-on-year increase, driven primarily by expansion in corporate banking and treasury portfolios.
Shareholders’ equity grew 6.3 percent to $3.45 billion, while liabilities increased 18.7 percent to $8.59 billion, reflecting what the fund described as robust funding activity.
The fund’s growth aligns with global energy trends, where resilient demand and continued investment needs in the sector are driving financing activity.
The International Energy Agency reported in July that global oil demand is expected to rise by about 700,000 barrels per day, while energy consumption in the Middle East and North Africa region is projected to increase due to population growth and energy-intensive economies.
At the same time, oil prices have held relatively stable despite supply increases from producers such as Iraq and easing OPEC+ cuts, providing favorable conditions for project financing.
Alongside this, the shift toward diversification and greater focus on environmental and socially linked projects mirrors the fund’s impact mandate, positioning it to benefit from both conventional and transition-related investment opportunities.
Khalid Al-Ruwaigh, CEO of TAEF, said: “Our strong half-year performance reflects the resilience of our business model and our unwavering commitment to growth and delivering meaningful impact in the MENA energy sector.”
He added: “Guided by our strategy, these results are a direct outcome of our sustained efforts across all business lines and our prudent capital management.”
Al-Ruwaigh said they remain focused on providing innovative financing and investment solutions that create value for their stakeholders, saying, “This reinforces our position as a leading and impact investment fund in the region’s energy landscape.”
CFO Vicky Bhatia highlighted the fund’s operational efficiency, noting: “These results demonstrate our ability to capitalize on market opportunities while maintaining operational discipline.
“With a cost-to-income ratio of just 17.9 percent, a non-performing loan ratio reduced to 0.3 percent, and a strong capital adequacy ratio of 29.7 percent, we remain well-positioned to sustain growth and meet our strategic objectives.”
Within business lines, the corporate banking portfolio grew 12 percent year on year to $5.93 billion, driven by demand across energy-related sectors and geographic diversification.
Investments and partnerships reached $1.50 billion, up 4.4 percent year on year, supported by selective investments and portfolio management.
Treasury assets rose 18.3 percent to $4.39 billion, benefiting from portfolio optimization and favorable interest rate conditions.
Total funding climbed to $8.37 billion, a 17.1 percent year-on-year increase, underpinned by debt issuances and proactive liability management.
The fund said this growth strengthened its flexibility to finance future initiatives and support energy projects across the MENA region.